Treatment of imported fixed asset
Querist : Anonymous
1.My question is whether the foreign fluctuation booked in under profit and loss account or added in the cost of the fixed asset?
2.which date is taken to book the foreign fluctuation whether the bill date or bill of lading or bill of entry date?
and date will be the bill date
I disagree with Shri Himansuji.
1) as per As-11 the If the exchange difference relates to the acquisition of the depreciable asset, the same will be added or deducted from the cost of the assets. in other words if there is a gain cost of asset will be reduced and vice-versa.
Because As per AS-11 there is amendment from Ministry of Corporate Affairs vide Notification No-GSR-225(E) dated 31-03-2009 which is also extended upto 31-03-2012 vide
Notification dated 13-05-2011.
Please refer to page no. 139 of guide to accounting standards of taxmann.
2) for question no. 2 - no comments